CoinRoutes, an institutional cryptocurrency trading platform, has acquired QIS Risk, a portfolio and risk management provider for digital asset managers, the company said in a press release Tuesday.
The deal value was $5 million in cash and stock, and brings together CoinRoutes’ algorithmic execution technology with QIS Risk’s suite of portfolio monitoring and risk analytics.
CoinRoutes currently provides connectivity to more than 50 exchanges and over 3,000 digital assets, while QIS Risk integrates with more than 70 trade sources to deliver real-time tracking and analysis.
The combined platform will offer institutions execution across both centralized (CEX) and decentralized exchanges (DEX), real-time portfolio and profit-and-loss monitoring, stress testing and counterparty risk tools, and options trade capture for Deribit and over-the-counter (OTC) positions. It will also extend to decentralized finance (DeFi), with tracking for staking and on-chain derivatives.
As part of the transaction, QIS Risk founder Fred Cox will join CoinRoutes as global chief technology officer, with a mandate to oversee technology operations and expand the firm’s European presence.
“Digital assets have reached an inflection point where institutions require enterprise-grade infrastructure across the entire investment lifecycle,” Cox said in the release.
By combining CoinRoutes’ execution technology with QIS Risk’s analytics, the company can now provide a more comprehensive solution for institutional investors, according to CoinRoutes co-founder and CEO, Ian Weisberger.
The deal comes as institutional adoption of cryptocurrency trading infrastructure continues to accelerate. Since its founding seven years ago by Weisberger and Michael Holstein, CoinRoutes has processed more than $500 billion in executed trades.
The company’s execution management system is designed to allow clients to maintain control of their wallets and private keys while accessing liquidity across multiple trading venues, an approach that appeals to institutions seeking to minimize counterparty risk.